China’s Car Slump Has Dealers Slashing Prices, Giving Cheap Loans
- A downpayment of $149 enough to drive home a new sedan
- Profit squeeze seen leading to M&A among Chinese automakers
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China’s worst car-market slump in a generation is forcing manufacturers and dealers to resort to generous discounts and loan offers to lure buyers, as the slowdown hits automakers’ profits.
Incentives and reductions equivalent to more than 10 percent of the sticker price are now commonplace and interest-free loan offers abound as carmakers and dealerships struggle to bring buyers back to showrooms, especially outside China’s cities. But buyers aren’t biting, with car sales continuing to decline this year after the first annual drop in more than two decades.